School District Revenue Limit

Funding Description

Under California's school finance system, most general-purpose education funding is apportioned to school districts through a calculation called the "revenue limit". Each school district has a revenue limit funding amount per unit of average daily attendance (ADA). A district's total revenue limit is funded through a combination of local property taxes and state General Fund aid. In effect, the State makes up the difference between property tax revenues and the total revenue limit funding for each district. Revenue limits are funded through the California Department of Education Principal Apportionment process.

The first step in the calculation of each district's Revenue Limit funding is the calculation of their Base Revenue Limit amount. This amount is equal to their prior year Base Revenue Limit amount increased by the applicable cost-of-living increase (Elementary, High, or Unified amount). This amount is then multiplied by the district's "funded" ADA which is equal to the greater of current year or prior year second period ADA. For certain school districts a portion of the revenue limit is generated by a Necessary Small Schools allowance.

Several adjustments may be made to the revenue limit funding to include additional funding such as Unemployment Insurance Program funding. Also, other adjustments to the revenue limit funding are made for various purposes including the recapture of savings related to the Public Employees Retirement System (PERS) employer contribution rate.

The revenue limit for each school district will be reduced by 22.272 percent.

Important Dates

Date Application Available

Unavailable

Due Date

Unavailable

Expected Notification Date

February 20, 2013

Additional Information

Principal Apportionment amounts are calculated three times for each fiscal year: The First Principal Apportionment (P-1) is certified by February 20th, the Second Principal Apportionment (P-2) is certified by July 2nd, and the Annual calculation is certified by February 20th of the following year (at the same time as the following year's P-1 certification).

Contacts

Program

Office of Principal Apportionment and Special Education, 916-324-4541, PASE@cde.ca.gov

Fiscal

Office of Principal Apportionment and Special Education, 916-324-4541, PASE@cde.ca.gov